Labor Law

• The Labor Code of the Philippines is the legal code governing employment practices and labor relations in the Philippines
• Presidential Decree No. 442 on Labor day was enacted


  May 1, 1974
• The writing of a labor code began in 1968 under the leadership of the then Minister of Labor, Mr. Blas F. Ople under the umbrella of President Ferdinand Marcos in the exercise of his then extant legislative powers
• 1987 Constitutional Provisions on Labor
• Article 2 of the 1987 Constitution promotes full employment, a rising standard of living, and an improved quality of life for all
• Labor is affirmed as the primary social economic force in the 1987 Constitution
• Article 3 of the 1987 Constitution grants the right to organize, form unions, associations, or societies
• Workers have the right to a speedy disposition of their cases before all judicial, quasi-judicial, or administrative bodies according to the 1987 Constitution
• Article 13 of the 1987 Constitution allows workers to conduct collective bargaining or negotiation with management, engage in peaceful concerted activities (including strike in accordance with law), enjoy security of tenure, work under human conditions, receive a living wage, and participate in policy and decision-making processes affecting their rights and benefits as may be provided by law
• Article 3 of the Declaration of Basic Policy, PD 442, affords full protection to labor, promotes full employment, ensures work opportunities regardless of sex, race, or creed, regulates the relations between workers and employers, and assures the rights of workers to self-organization, collective bargaining, security of tenure, just and humane conditions of work
• Article 13 of the 1987 Constitution under Social Justice allows workers to enjoy security of tenure, work under human conditions, receive a living wage, and participate in policy and decision-making processes affecting their rights and benefits as may be provided by law
• Civil Code Provisions on Labor include Article 1700, Article 1701, Article 1702, and Article 1703
• There is a two-tiered approach to labor: Labor Standards (Books 1 to 4 of the Labor Code) and Labor Relations (Books 5 and 6 of the Labor Code)
• Article 4 of the Labor Code states that all doubts in the implementation and interpretation of the provisions of this code, including its implementing rules and regulation, shall be resolved in favor of labor
• The employer-employee relationship consists of four-fold elements: selection and engagement of the employee, payment of wages, power of dismissal, and power to control the employee as to the means and methods the work is to be accomplished (Control Test)
• The "Control Test" is deemed as the most important indicator that there exists an employer-employee relationship
• Management Rights & Prerogatives include the right to selection of employee, discipline employees, prescribe company rules, transfer or re-assign employees, and determine company policy
• Limitations of Management Prerogative include law, contract or collective bargaining agreements, and general principles of fair play and justice
• Kinds of Employees include Regular Employees (usually necessary or desirable in the usual business or trade of the employer) and Casual Employees (not regular, project, or seasonal employees performing activities not usually necessary or desirable)
• Event


  July 7, 2004
• Kinds of Employees


  • Regular Employees
  • Casual Employees
  • Probationary Employees
  • Project Employees
  • Seasonal Employees
  • Fixed-Term Employees
  • Security Guards
  • Floating Status
• Regular Employees are usually necessary or desirable in the usual business or trade of the employer (Article 295, Labor Code)
• Casual Employees are not regular, project, or seasonal employees and perform activities not usually necessary or desirable (GMA Network vs. Pabriga, November 27, 2013)
• Probationary Employees do not exceed six (6) months from the date the employee started working unless covered by an apprenticeship
• Project Employees are fixed for a specific project or undertaking, the completion or termination of which has been determined at the time of the engagement of the employee
• Seasonal Employees are seasonal in nature and the employment is for the duration of the season
• Fixed-Term Employees have employment contracts specifying that the same will last only for a definite period
• Security Guards are individuals who render personal service to watch or secure a residence, business establishment, etc. They inspect, monitor, or perform body checks or searches of individuals or baggage and other forms of security inspection
• Floating Status is an indefinite period of time when employees do not receive any salary or financial benefit provided by law
• If an employee has rendered at least one (1) year of service, whether continuous or broken, they shall be considered a regular employee with respect to the activity in which they are employed, and their employment shall continue while such activity exists
• Overseas Employment is not allowed for direct hiring of Filipino Workers except for specific cases mentioned in Article 18 of the Labor Code
• Exceptions to Article 22


  • If the worker's immediate family members, dependents, or beneficiaries are residing with him abroad
  • Filipino servicemen working in military installations
  • Immigrants and Filipino professionals and employees working with United Nations agencies or specialized bodies
• All overseas workers are required to remit a portion of their foreign exchange earnings ranging from 50% to 80% thereof, depending on their kind of jobs (POEA Rules)
• Recruitment and placement refer to any act of canvassing, enlisting, contracting, transporting, utilizing, hiring, or procuring workers, and includes referrals, contract services, advertising, or promising for employment locally or abroad whether for profit or not, when taken by a non-license or non-holder of authority (Article 13 (b))
• Types of Illegal Recruitment include Simple Illegal Recruitment, committed by or against one (1) or two (2) persons only. The accused can be convicted only of 'simple' illegal recruitment if the elements of 'large scale' or syndicate are absent (Article 38, Labor Code)
• Types of Illegal Recruitment

  • Simple Illegal Recruitment
  • Illegal Recruitment Involving Economic Sabotage
  • Syndicated
  • Large Scale or Qualified
• Article 38, Labor Code
• Simple Illegal Recruitment


  Committed by or against one (1) or two (2) persons only. Where illegal recruitment is proved but the elements of ‘large scale’ or syndicate are absent, the accused can be convicted only of ‘simple’ illegal recruitment
• Illegal Recruitment Involving Economic Sabotage


  Illegal recruitment that involves economic sabotage
• Syndicated Illegal Recruitment


  Carried out by a group of any three (3) or more persons conspiring and confederating with one another